'%3e%3cpath%20fill='%23eee'%20d='m0%200%20192%20256L0%20512h47l465-189v-34l-32-33%2032-33v-34L47%200Z'/%3e%3cpath%20fill='%23333'%20d='M0%20142v228l140-114z'/%3e%3cpath%20fill='%23ffda44'%20d='M192%20256%200%2095v47l114%20114L0%20370v47z'/%3e%3cpath%20fill='%236da544'%20d='M512%20223H223L0%200v94l161%20162L0%20418v94l223-223h289z'/%3e%3cpath%20fill='%23d80027'%20d='M512%200H47l189%20189h276z'/%3e%3cpath%20fill='%230052b4'%20d='M512%20512H47l189-189h276z'/%3e%3c/g%3e%3c/svg%3e)
Dividend tax in South Africa 2026
Local company dividends carry a flat 20% dividends tax, withheld before the money reaches you.
Because the company withholds and pays it over, most shareholders have nothing extra to file.
Distributions from real estate investment trusts (REITs) work differently — they are taxed as ordinary income at up to 45%.
Foreign dividends are exempt if the payer is locally listed or you hold at least 10% of its shares and votes.
At a glance
- top rate
- 20% flat
- entry band
- 20% from the first rand of taxable dividends
- tax year basis
- 2026/27 year of assessment, 1 March 2026 to 28 February 2027
- filing deadline
- Withheld at source; annual return by 23 October 2026 if you file
- residency basis
- Applies to dividends from resident companies and locally listed foreign companies
- regime flag
- Dividends inside a tax-free investment account escape the 20% entirely
Rates
Dividends tax 2026/27
| Recipient | Rate |
|---|---|
| Resident individual | 20% |
| Non-resident individual | 20% before treaty relief, often cut to 5–15% |
| Any holder — locally listed foreign company dividend | 20% |
Marginal rates apply within each band.
Thresholds & allowances
- Tax-free investment accountZAR 46,000 yearly contribution cap
Dividends earned inside the account carry no dividends tax and no income tax.
- Foreign dividend participation exemption10% of shares and votes
At or above that stake, foreign dividends are exempt from income tax.
- Real estate investment trust (REIT) payoutsTaxed as income, up to 45%
No 20% dividends tax, but the payout joins your ordinary taxable income.
Residency
Residency trigger
The 20% applies to dividends declared by resident companies, and to foreign dividends on shares listed on a recognised local exchange. Liability sits with the shareholder, but the company withholds.
Non-resident treatment
Non-residents face the same 20% withholding, reduced under many tax treaties on filing the required declaration with the payer.
Notes
- The 20% is final for most people — no further income tax on the same dividend and normally nothing to declare.
- Foreign dividends that do not qualify for exemption are income-taxed under a reduction formula, so the effective burden stays below your full marginal rate.
- Payouts from real estate investment trusts (REITs) are the main exception: taxed as ordinary income at up to 45% rather than the flat 20%.
- Using the ZAR 46,000 yearly tax-free investment allowance shelters dividend income completely.
FAQ
How much tax comes off my share dividends?
A flat 20%. On a ZAR 10,000 dividend the company withholds ZAR 2,000 and you receive ZAR 8,000.
Do I need to declare dividends on my return?
Local dividends are exempt from income tax and the 20% is already withheld, so usually no extra tax is due. Real estate investment trust (REIT) payouts do go into taxable income.
Figures: tax year 2026/27 (March–February), compiled from public sources. Not tax advice.